That's the Krampus. He's in a lot of Central and Eastern European folklore as kind of the opposite of Santa. While Santa goes around giving gifts to nice children, the Krampus steals naughty children away and beats them with birch rods.
It's a lot more likely he's putting on a beard and becoming Santa, rewarding good and bad kids alike. That explains why your bully got that GI Joe aircraft carrier and you got a $4 Go-Bot.
(Just to be clear, in case anyone wants to argue religion with me - I believe in Satan about as much as I do Santa.)